First United reports first-quarter earnings

OAKLAND — First United Corp., a bank holding company and the parent company of First United Bank & Trust, announced consolidated net income available to common shareholders of $2.5 million for the first three months of 2018, compared to $1.4 million for the same period of 2017.

Basic and diluted net income per common share for the first three months of 2018 were both 35 cents, compared to basic and diluted net income per common share of 22 cents for the same period of 2017.

The increase in earnings was primarily due to an increase in net interest income of $1.2 million; an increase of $200,000 in wealth management income; a $200,000 decrease in provision for loan loss expense; a decrease of $500,000 in preferred stock dividends due to the redemptions of the corporation’s series A preferred stock in March and November 2017, offset by a $600,000 increase in salaries and benefits attributable to new hires in late 2017 and first quarter of 2018; a $200,000 increase in life and health insurance related to increased claims in the first quarter of 2018; an increase of $200,000 in equipment, occupancy and data processing expenses in the first quarter of 2018, an increase in other real estate owned expenses due to valuation allowance write-downs on properties in the first quarter of 2018 and an increase in other miscellaneous expenses such as legal and professional, contract labor and miscellaneous loan fees.

The net interest margins for the first three months of 2018, the year ended Dec. 31 and the first three months of 2017, on a fully tax equivalent basis, were 3.68, 3.37 and 3.27 percent, respectively.

According to Carissa L. Rodeheaver, chairman, president and chief executive officer, “The bank was well-positioned for a rising interest rate environment which had a positive impact on the net interest margin for the first quarter of 2018. Our retail associates have also done an excellent job of holding interest expense relatively stable and continuing to build our low-cost core deposits. The improved margin along with increasing income from our wealth management division, the lower cost of capital and the reduced tax rates all contributed to our strong financial quarterly results.

“The board of directors was pleased to announce the resumption of a cash dividend during the first quarter, which was made possible in large part by our stable core earnings, reduced capital expense and improved asset quality. The dividend of 9 cents per common share was paid May 2. We hope to be able to continue this cash dividend in future quarters,” she said.

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